Just a quick post to let everyone know that as discussed in my earlier post(s), I’m shorting GBP today against majors such USD, JPY and CHF. Also enjoying the Long Trade on EURGBP where the last 4 hours bar has turned out to be extremely profitable.

Its interesting to note that most of the pairs have gone back to the Channel Bound Range which means more trades but limited profits in terms of pips and eventually more manual monitoring required. However, the good times aren’t too far either.

Intraday bias in GBP/USD remains on the upside for the moment. Rise from 1.4798 is treated as the third leg of consolidation pattern that started at 1.4783 and is possibly targeting 1.5381 resistance. Nevertheless, upside should be limited by 38.2% retracement of 1.6456 to 1.4783 at 1.5422 to conclude the consolidation and bring down trend resumption. On the downside, below 1.5118 minor support will flip intraday bias back to the downside. Decisive break of 1.4783 low will confirm that whole decline from 1.6456 has resumed and should target 200% projection of 1.6875 to 1.5829 from 1.6456 at 1.4364.

In the bigger picture, there is no change in our bearish view. That is, medium term rebound from 1.3503, which is treated as a correction to down trend from 2.1161, has completed at 1.7043 already. Fall from there is tentatively treated as resumption of the down trend from 2.1161 and should target a new low below 1.3503. On the upside, break of 1.5814 resistance is needed to invalidate this view. Otherwise, outlook will remain bearish.[Written by Action Forex ]

The pound reverThe pound reversed below the new support level at $1.53, warning of a bull trap. Expect another test of $1.48. Recovery above $1.53, however, would signal a rally to $1.60, confirmed if the declining trendline is broken.

Trade Idea: GBP/USD - Sell at 1.4580 Target: 1.4160 ; Stop: 1.4700 .============================================Pound/Dollar traded hesitantly on Wednesday, in converse with negative Interbank sentiment atnearly -59%. The Cable was moving within the narrow 1.4337 - 1.4448 range, closing the day at1.4386. Today Sterling is making recovery efforts, reaching the high levels from the beginningof the week. First resistance is today's top at 1.4535. Break above it should extend thebullish movement further towards 1.4627. The nearest support is yesterday's bottom at 1.4337.Going bellow it should extend British Pound's reduction further down towards next downwardobjective 1.4250.

Intraday bias in GBP/USD is turned neutral as it retreats sharply from intraday high of 1.4885. Note that recovery from 1.4230 is expected to be limited by 100% projection of 1.4230 to 1.4769 from 1.4346 at 1.4885. Break of 1.4644 minor support will suggest that such recovery is completed and flip intraday bias back to the downside. Further break of 1.4346 will confirm this case and target a retest of 1.4230 low next. However, decisive break of 1.4885 will target 1.5053 resistance next.

As expected, Cable moved up in the Asian and the European sessions today to touch a high of 1.5968. The pair honoured the Resistance at 1.5970 (61.8% retracement of the fall from 1.7042 (Aug-09) to 1.4227 (May-09)) and is currently trading lower. We may see the markets go down towards 1.5900-1.5700, before another rally beyond 1.60 figure in the coming days.